Analysts on Wall Street Lower Ratings for These 5 Stocks

02. Hyatt Hotels Corporation (NYSE:H)

Price Reaction after the Downgrade: -2.53 (-1.61%)

On March 11, Hyatt Hotels Corporation (NYSE:H), a prominent player in the hospitality industry, witnessed a notable event in the stock market. Morgan Stanley, a renowned financial institution, revised its rating on Hyatt Hotels Corporation (NYSE:H) from “Overweight” to “Equal Weight,” while adjusting the price target from $149.00 to $156.00. This shift in assessment suggests a change in the perception of Hyatt Hotels’ performance and potential within the hospitality sector. Following this downgrade, the market price of Hyatt Hotels Corporation (NYSE:H) experienced a decline of 1.61% by the closing bell on March 11, settling at $156.17. This adjustment in market value reflects investor response to Morgan Stanley’s updated stance, indicating a more balanced or neutral outlook on Hyatt Hotels Corporation (NYSE:H) future prospects in the hospitality industry.

Baron Focused Growth Fund stated the following regarding Hyatt Hotels Corporation (NYSE:H) in its fourth quarter 2023 investor letter:

“Shares of global hotelier Hyatt Hotels Corporation (NYSE:H) increased in the quarter. The company reported strong demand across its portfolio, led by robust leisure travel and improvement in its business transient and group business that is now pacing above pre-COVID levels. Room rate increases are generating solid margins and cash flow. In our view, Hyatt’s sound, underleveraged balance sheet keeps it well positioned should we enter a possible downturn in 2024. The hotel transaction market is improving, and the company has two properties for sale that should close in early 2024. At that time more than 80% of revenue will be generated from fees with the remainder from owned assets. We also believe these transactions should help boost the stock’s multiple over time.”